2020-21 Budget Development Board of Education Meeting April 14, 2020
Niskayuna Strategic Plan Established 2016 2
Our Program Vision Deeper learning experiences that focus on problem-solving Flexible spaces that enable hands-on activities Student choice & ownership of their learning; Emphasis on growth toward standards and progress Incorporates modern technology Space where groups of various sizes can come together for learning, community building Greater social and emotional support; time and space for this Cross-curricular learning & teamwork Off-campus learning experiences, community service, mentors, intern/externships
The New Reality ● The impact of COVID-19 on school budgets is likely to be significant and lasting. ● We continue to work to identify all potential solutions to our budget challenges. We know that reductions will be necessary, but we want to limit them to the greatest extent possible. ● The budget vote won’t take place until at least June 1. ● We are a strong community and need to do everything it takes to support our students and their success. 4
What tonight is... ● A more detailed report on how we arrived at the April 7 presentation. ● A presentation of additional information and general scenarios in light of questions last week. ● An open conversation with the Board as we work toward the development of a 2020-21 budget under extraordinary circumstances. ● An opportunity for the Board to provide direction. What tonight is not... ● A recommendation of a budget for next year. 5
Capital Project vs. Operating Budget ➔ The debt service from the capital project we are planning has NO impact on next year’s budget. ➔ All of the debt service in the 2020-21 budget is for projects that have already happened ➔ The capital project that we have been discussing would not have an impact on the operating budget until at least 2023-24. ➔ We are focused on a long-term plan that allows us to keep debt levels stable while improving our facilities.
Managing Debt Levels Current Debt Service Schedule
Why “Letting the Debt Fall Off” is Not Good Tax Rate Turbulence We still need to maintain our schools.
Debt Service Levels: Our Plan Tax Rate Impact Steady
2020-21 Budget Our Focus Our Approach ➔ ➔ Maintaining Positions to the Consideration of a Greatest Extent Possible higher-than-usual tax levy increase ➔ Programs for Students ➔ Savings through attrition ➔ A Budget that the Community ➔ Potential for retirement Can Afford incentive ➔ Review all areas of the budget for savings ➔ Strategic use of reserves ➔ Reductions in workforce
A Work-in-Progress March 9 March 24 April 7 Budget Total $92,121,091 $90,812,260 $90,118,350 Tax Levy 6.86% 4.57% 3.76% FTE Reductions 2 20 24.5 11
Question: How did we get to the April 7 budget? Total Expenditures: $90,118,350 - Additions to manage class size and meet MS special education needs - Loss of anticipated state aid with final NYS budget - Strategic use of reserves - Budget reductions in all areas - Some factored into March 9 and March 24 presentations - Additional reductions between March 24 and April 7 12
Loss of Anticipated State Aid (Between 3/24 and 4/7) • Loss of anticipated Foundation Aid increase ($362,000) • Introduction of Pandemic Adjustment (Loss of $310,000) • Recalculation of Transportation and BOCES Aid due to school closure ($156,500 less in current year) • Pandemic Adjustment is offset by federal funds in the state aid run, but we also have to prepare for the possibility of mid-year aid cuts.
Question: Can we use reserves to help address the budget? Strategic Use of Reserves ● Between 3/24 and 4/7, we identified $335,000 in reserves that can be used toward the 2020-21 budget. ● Depleting reserves any further would cause greater fiscal challenges in the long-run. They exist for a reason. ● Appropriating more unassigned fund balance will cause us to enter subsequent budget years with a greater deficit. We have to be cautious about using one-time revenues for recurring expenses. What will support that expense next year?
What happens if you over-rely on reserves to balance the budget? Start of Next Year’s This Year Budget Process... p a G Using More Fund Balance Revenue Expenses Revenue Expenses
Question: What reductions were accounted for in the April 7 presentation? ● All areas, including BOCES and Contractual Services, were reviewed for budget reductions. ● A level of reductions was already factored into the March 9 presentation (which generally maintained current staffing). ● Additional reductions were identified between March 9 and March 24 and again between March 24 and April 7. ● All of the reductions identified were accounted for in the figures presented on April 7 and are listed on the next three slides.
Budget Reductions Included in 3/24 Presentation Category Adjustment BOCES Reduction of 1 day/week of BOCES Health and Safety Services BOCES Reduction of 1 day/week of BOCES Communications Services BOCES Reduction of 1 Tech Valley HIgh School Tuition (student returned to district) BOCES Reduced Out-of-District Placements BOCES Reduced Technology Purchase BOCES Reduced Science Kit Purchase BOCES Reduction in BOCES Transportation Budget BOCES Total $288,187 Contractual Reduced Out-of-District Tuition Contractual SCCC Lease Contractual O&M Contractual Exp Contractual Instructional Contractual Exp Contractual Administrative Contractual Exp Contractual Curriculum Contractual Exp Contractual Total $575,800 Equipment, Materials & Supplies Reductions in equipment, materials & supplies, textbooks Equipment, Materials & Supplies Reduced technology requests 17 Equipment, Materials & Supplies Total $171,438
Budget Reductions Included in 3/24 Presentation Category Adjustment Transfers Reduced transfer to support the School Lunch Fund $25,000 Transfers Total Personnel/FTE O&M Environmental Technician Vacancy - Leave Unfilled/1.0 FTE Personnel/FTE Reduction in O&M Substitute Costs Personnel/FTE Instructional Reductions/12.875 FTE Personnel/FTE Non-Instructional Reductions/2.57 FTE Personnel/FTE Administrative Reductions/ 2.0 FTE Personnel/FTE Summer Professional Development Reductions Personnel/FTE Educational Assistant - Attrition/1.0 FTE Personnel/FTE Total $1,392,214/ 19.445 FTE 18
Additional Budget Adjustments, 3/24 to 4/7 Category Adjustment Communications Budget Reductions BOCES Software Adjustment BOCES BOCES Total $28,260 Transportation/Superintendent/BOE/Business/Communications/Legal Contractual Contractual Total $58,700 Textbooks (purchase with 19-20 funds) Equipment, Materials & Supplies IT and Instructional Equipment/Transportation and Business Office Supplies Equipment, Materials & Supplies Equipment, Materials & Supplies Total $115,321 Instructional Reductions/5.6 FTE Personnel/FTE Non-Instructional Reductions/.83 FTE Personnel/FTE Instructional Substitute Reduction Personnel/FTE Increased FTE/2.15 FTE Personnel/FTE $493,629/6.43 FTE Personnel/FTE Total 19
Question: What are our historical budget trends? Historical Budget Perspective: Expenditures Health Insurance Pension Cost Total Budget Total Budget Salary Growth Cost Increase Increase Increase $ Increase % Year 2015-16 $2,870,205 ($700,964) ($1,443,311) $771,897 1.00% 2016-17 $1,434,489 $468,331 (534,278) $2,357,752 3.02% 2017-18 $1,268,085 $589,146 ($209,222) $957,407 1.19% 2018-19 $2,002,084 $339,180 $246,700 $2,793,534 3.42% 2019-20 $1,328,681 $716,220 ($552,000) $3,274,628 3.89% 2020-21* $1,534,624 $1,719,500 $397,900 $4,652,617 5.32% *For 2020-21, expenditures reflect 3/9 presentation for trend comparison purposes. 20
Historical Budget Perspective: Revenue Other Revenue State Aid Tax Levy Tax Levy NCSD Tax Total Revenue Year Increase Increase Increase $ Increase % Levy Cap Increase 2015-16 $717,537 $2,716,128 $0 0.00% 1.23% $3,433,665 2016-17 $231,105 $1,902,470 $224,177 0.41% 0.41% $2,357,752 2017-18 ($333,235) $158,770 $1,131,872 2.08% 2.08% $957,407 2018-19 $536,508 $791,151 $1,465,875 2.64% 3.07% $2,793,534 2019-20 $819,996 $1,129,659 $1,340,473 2.35% 2.50% $3,290,128 2020-21* ($152,763) $273,073 $1,257,391* 2.15%* 2.15% $1,377,701 *For comparison purposes of revenue trends, this chart reflects state aid in the final NYS budget and a tax levy increase at the cap of 2.15%. A decision on the 2020-21 tax levy has not yet been made and there is the potential for a mid-year aid cut. 21
Investments in the Last Five Years ➔ Implemented Elementary Class Size Management Plan ➔ Managed/balanced Middle School Class Size ➔ Significantly strengthened social emotional support districtwide ➔ Increased English as a New Language Support ➔ High School Alternative Education Program ➔ Expanded/strengthened Special Education Continuum ➔ Significantly expanded IT & Buildings and Grounds Capacity ➔ Safety Enhancements ➔ Plus: Curriculum Development & Program Reviews 22
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